Question

What's the simple intrest rate on a 1150$ investment paying 202.86$ interest in 3.6 years​

Answer 1

The simple interest rate on a 1150$ investment paying 202.86$ interest in 3.6 years​ is 4.9%

Solution:

Given that

Amount invested = $1150

Interest earned on investment = $202.86

Duration of investment = 3.6 years.

Need to determine rate of interest

Let’s assume rate of interest in percentage be represented by variable "x"

Formula for Simple interest is as follows:

`\text { simple interest }=\frac{\text { Principal } * \text {rate of interest } * \text { duration in years }}{100}`

In our case simple interest = $202.86, principal = 1150 , rate of interest = x , duration = 3.6 years

On substituting the values in formula we get

`202.86=(1150 * x * 3.6)/(100)`

On solving above expression for x, we get

`\begin{array}{l}{(202.86 * 100)/(1150 * 3.6)=x} \\\\ {\Rightarrow x=(20286)/(4140)=4.9}\end{array}`

Hence simple interest rate on a 1150$ investment paying 202.86$ interest in 3.6 years is 4.9%